Presentation on theme: "Culinarian Cookware: Pondering Price Promotion"— Presentation transcript:
1 Culinarian Cookware: Pondering Price Promotion Group 5: Team Case Number OneAndrei GrechkoShane JohnstonNakia LapeKyle McDanielKevin Niehaus
2 Organization Objectives and Constraints Financial Condition Management PhilosophyOrganizational StructureOrganizational CultureSummary of Strengths and WeaknessesImplications for Strategy DevelopmentTarget Market AnalysisAlterative Selection
3 Four Strategic Priorities in 2006 ObjectivesFour Strategic Priorities in 2006Widen distribution networkIncrease market share of the premium cookware segmentPreserve prestigious imageContinue to capture revenue growth of at least 15%, while maintaining pretax earnings of $12.5 million.
4 Determine if a price promotion is necessary. Most Imperative GoalsDetermine if a price promotion is necessary.Develop the details of a marketing strategy that is consistent with the company’s overall strategic objectives.
5 Constraints The preservation of brand equity Perceived negative impacts from the 2004 price promotionHighly selective distribution channels
8 Management Philosophy PaternalisticPositive: Two-way communication, which motivates workers.Negative: Slows down the decision making process.
9 Organizational Structure Structured by FunctionPositive: Makes efficient use of specialized resources and makes supervision easier.Negative: Difficult to get quick answers, determine accountability, and may be difficult working with other departments in a unified way to achieve the organization’s goals.
11 Organizational Culture Pride. Pride in having unparallel product quality, most advanced performance technology, and strong dealer support.Built on brand equity. Every decision takes into account the preservation of Culinarian’s prestigious name and image.
12 Strengths and Weaknesses Culinarian’sStrengths and Weaknesses
13 Potential Resource Strengths and Competitive Capabilities Clear strategic direction.Core competencies in quality and performance technology.Strong brand name image/company reputation.Stronger dealer relationships than key rivals.Leader in metallurgy technology.Proven product innovation capabilities.Good management philosophy.Employees are motivated.A strong financial condition.A distinct competence in utilizing internal and external consumer research.Business decisions are highly scrutinize before implemented.
14 Potential Resource Weaknesses and Competitive Deficiencies Weak advertising and promotion.Losing market share because of attachment to brand name image.Flawed data analysis by a third-party consultant.Limited distribution channels.Management is cautious to pursue bolder price promotion.
15 Implications for Strategy Development The preservation of brand equity could prevent Culinarian from considering a price promotion, fearing that it would cheapen the products’ image.Perceived negative impacts from a price promotion offered in 2004 are heavily influencing the decision; however, in reanalysis it may be found that the promotion was in fact beneficial.The company is very selective in how merchandise is distributed, which limits the market in which the products are sold.Weak advertising and promotion policies.
16 Target market Men and woman between ages 30 to 55, With a household income of 75k +The group tends to care more about what the product can do rather than how it looks. A large likely hood of watching cooking shows and then purchasing cookware with familiar names of cooking celebrities or brands used by those seen on shows. Consumer wants to compare brands and productsWant to have the biggest “bang” for their dollar.
18 Brand Extension Benefits: Costs: Would be able to offer other premium culinary products to complement their cookwareUse the new support products as “gifts” during promotional eventsIncrease the prestigious brand imageCosts:Would need to understand:What materials would be neededHow to produce new products outside their expertiseHow to market the items